New Wage Agreement to increase Bank employees salaries in India

Indian Banks Association has favored the demands of the Bank employees unions for a 15% hike in their current salaries. According to the decision, the Indian Banks Association has signed a wage agreement with Bank employee unions and officers.

The revised pay scale is going to benefit 43 Banks which also include a few public sector banks, private banks and also certain foreign bank employees. The new scale is applicable from November 1st, 2012. It is estimated that the hike in the employees pay scale, would put a additional Rs 4,725 crore burden on the banks.

IBA chairman T M Bhasin told reporters ” The increment would cost the bank a Rs 4,725 crore. However, taking into consideration the superannuation cost, the estimated burden is up to Rs 8,370 crore”.

The pay scale has been revised from the existing Rs 14,500-Rs 52,000 to Rs 23,700-Rs 85,000 for the officers. A special allowance ranging from 7 to 11 percent of the basic pay has been introduced for the officers.

The pay scale for work men and non-subordinate staff of the banks has been increased from the existing Rs 7,200-Rs 19,300 to Rs 11,765-Rs 31,540. similarly the scale of pay for subordinate staff has been increased from Rs 5,850-Rs 1,350 to Rs 9,560-Rs 18,545. A special allowance for workmen is also introduced with a 7.75 percent of basic pay, the NDTV reports.

Notably, the Bank employees are soon to get holidays on the second and the fourth Saturdays of each month. Mr Bhasin said that the proposal has been sent to the RBI and that it would take around 3-4 weeks for the new rule to get implemented. Apart from this, the employees working under the Bank were also provided a insurance scheme and a medical allowance.